Dear User Advisorymandi.com or Pro advisory Championship (PAC) having purpose to provide you analytical skills of numbers of SEBI registered Research Analysts and Investment Advisers to choose best one among them for your hard earned investments. We Advisorymandi.com or Pro advisory Championship (PAC) not promote any adviser or provide any advise through Call, SMS and Social media platforms or give assurance of any return.

Register as Broker

Interested In

Update Profile

Banks call in police as people rush to ditch old banknotes

NEW DELHI/MUMBAI (Reuters) - Indian banks called in thousands of police on Thursday to manage huge queues outside branches, as people tried to exchange bank notes abruptly pulled out of circulation by Prime Minister Narendra Modi in a crackdown on "black money".

Modi announced the shock move on Tuesday night to ditch 500 and 1,000 rupee notes - worth a combined $256 billion - that he said were fuelling corruption, being forged and even paying for attacks by Islamist militants against India.

Lines formed before banks reopened after being shut on Wednesday to prepare for the change, as people tried to swap the worthless cash for smaller bills or new 2,000 rupee notes being rushed into circulation and made to be harder to counterfeit.

Some people frustrated by the long wait got into arguments at Canara Bank near the parliament building in New Delhi, as people barged into queues that wound through the branch and on to the street outside.

"Why is there no-one here to manage anything?" shouted one man, as he jostled with others in the line.

Branch manager S.K. Verma, unable to get through to the local police station, called an emergency hotline for help.

"I want two policemen deputed outside my branch!" he said. Twenty police stood outside a nearby outlet of the Reserve Bank of India, the central bank, letting in customers a few at a time.

Economists and some businesses, especially those involved in cashless payments, have welcomed the "demonetisation" scheme as a vital step towards broadening the formal economy and improving tax compliance.

But it has disrupted the daily lives of hundreds of millions of Indians who live in the cash economy that is estimated to account for a fifth of India's $2 trillion gross domestic product and who have low confidence in banks or plastic cards.

Fresh produce prices dropped sharply in food markets as people ran out of cash, or vendors were unable to give change, while the government ordered hospitals and filling stations to accept the old money for a few days longer.

CASH CRUNCH

Although a few people were able to exchange their old money for new notes, there were strict caps on account withdrawals and most came away with bundles of lower-denomination bills.

People were allowed to make a one-time exchange of 4,000 rupees in cash and one-time account withdrawals of 10,000 rupees, capped at 20,000 rupees per week.

Cash dispensers remained closed and were due to reopen on Friday.

It was the same story for senior bureaucrats in the capital's government district and daily labourers in Old Delhi, where youths reserved places in lines to earn some cash.

Trading of farm commodities around the country was disrupted for the second day on Thursday and in many markets farmers were struggling to sell their produce.

Prices of perishable fruit and vegetables have fallen by up to a quarter as traders were unable to sell them to vendors, who pay in cash.

"Most transactions of farm commodities are conducted in cash and since cash is not available we are not able to sell," said Rohan Ursal, a trader based in Pune in the western state of Maharashtra.

CLEANER SYSTEM

In television interviews, Finance Minister Arun Jaitley defended the switch, saying India was moving to a "cleaner system", and rebutting criticism that the government was resorting to arbitrary and authoritarian methods of running the economy.

But he said it would take two or three weeks for new 500 and 2,000 rupee notes to be put into circulation, replacing old notes worth 17 trillion rupees ($256 billion) that can be exchanged until December 30.

The old 500 and 1,000 rupee notes - until now India's highest denomination bills worth $7.50 and $15 respectively - accounted for 86 percent of all cash in circulation, analysts at Citi have estimated.

One economist said that Modi, by fixating on black money in the form of physical cash, had failed to recognise how tax evasion and financial crime works - for example by under-invoicing to create illicit wealth, using informal hawala networks to move offshore or buying gold and real estate.

"This very conception of 'black money' is absurd," left-leaning economist Prabhat Patnaik wrote in The Citizen, an online daily.

($1 = 66.4275 Indian rupees)

(Additional reporting by Cathal MacNaughton in New Delhi and Sankalp Phartiyal in Mumbai; Writing by Douglas Busvine)

Dr. Ravindra Dhivare

Dr. Ravindra Dhivare

Advisorymandi.com is really appreciable . As they give proper calls & levels with proper SL. Advisorymandi,com teaches us, how to trade in share market in proper way. Personalized services also tell you about your services like, phone calls, reminders & other suggestions are really very appreciable with polite conversations.
Outstanding team effort as they are very cooperative , polite and helps in sorting out problems and queries in best possible manner.

SHAKTI

Working with Advisorymandi.com was the best decision of my life. The work is highly credible. A BIG... Read More

SHAKTI

Working with Advisorymandi.com was the best decision of my life. The work is highly credible. A BIG THANKS for their virtuoso services.

ADITYA

ADVISORYMANI.COM is a platform where you can know everything about share market and how to trade?It... Read More

ADITYA

ADVISORYMANI.COM is a platform where you can know everything about share market and how to trade?It is a best Platform for a beginner who has just started trading. Employee of advisorymandi are very friendly. They are always ready for you to help in any condition. From my opinion every beginner who wants to be a successful trader , they the should join "ADVISORYMANDI.COM"

MANDEEP

YOUR WORK SPEAKS VOLUMES OF THE KIND OF CONCEPTS IT IS-EFFICIENT,ORGANIZED and RESULT ORIENTED. WELL... Read More

MANDEEP

YOUR WORK SPEAKS VOLUMES OF THE KIND OF CONCEPTS IT IS-EFFICIENT,ORGANIZED and RESULT ORIENTED. WELL DONE!! ADVISORYMANDI.COM AND TEAM

Experts Pick

Rekha Chauhan

Weekly Outlook-Nifty

After forming Harami Pattern in weekly chat in the past two weeks, the NSE benchmark Nifty managed t...

Rekha Chauhan

Research

Rekha Chauhan

Weekly Outlook-Nifty

After forming Harami Pattern in weekly chat in the past two weeks, the NSE benchmark Nifty managed t...

Rekha Chauhan

Research

Rekha Chauhan

Weekly Outlook-Nifty

After forming Harami Pattern in weekly chat in the past two weeks, the NSE benchmark Nifty managed t...

OPINION POLL

Will Nifty attain previous Budget high(11,180) this year again?

Yes

No

Can't Say

Total Votes: 2010

Enter email-id to share this news

Important Information

Please fill the required Disclosure/Disclaimer.

Disclaimer

The information and material contained in these pages and the terms, conditions, and descriptions that appear are subject to change without prior notice. Investments in equity shares, debentures, commodities, etc, are not obligations of or guaranteed by the ADVISORYMANDI , and are subject to investment risks.....More